Why Low-Income Lending Won't Take A Hit

Published on:
12 September 2006 at 10:18 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00007599-why-low-income-lending-wont-take-a-hit/

Will low-income families become innocent victims of the crackdown on Fannie Mae? After all, one of Fannie’s official missions is to increase the rate of homeownership by expanding the pool of capital available for mortgage loans. If Fannie shrinks that pool, low-income people could find it harder to get mortgages and buy homes.

But most experts say the risk of that is small. They think Fannie may not have to shrink its business at all. And even if it does, others will likely step in to fill the breach. Fannie’s fixes to its accounting problems — especially strengthening its capital position — “will have no impact on minority and low-income homeownership,” argues Karen Shaw Petrou of Federal Financial Analytics Inc., a firm that keeps track of Fannie and Freddie Mac (FRE ) for banks and other clients.

For this complete story, please visit Why Low-Income Lending Won’t Take A Hit.

Why Low-Income Lending Won't Take A Hit

Unknown Author

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